Assume That Expectations of the Price Level and Productivity Are

question 52

Multiple Choice

Assume that expectations of the price level and productivity are accurate. For this economy, we know that the natural rate of unemployment should depend on which of the following?

• A) Neither the level of productivity nor its rate of growth.
• B) The level of productivity, but not its rate of growth.
• C) Both the level of productivity and its rate of growth.
• D) The level of productivity, its rate of growth, and the history of its recent change.
• E) The rate of growth of productivity, but not its level.

---

Definitions:

Forged Instruments

Documents that are illegally altered or created to deceive or commit fraud.

Presentment Warranty

A guarantee in commercial transactions that all statements and endorsements regarding a negotiable instrument are true.

Altered Check

A negotiable instrument that has been unlawfully modified in order to benefit someone other than the intended payee, typically involving change to the amount or payee name.

Good Faith

Acting with honesty and integrity without any intention to deceive or defraud in a transaction or contract.